Reference no: EM133042845

Questions -

Q1. Kathryn, Mathilda, and Patricia are partners with capital balances of $430,000, $520,000 and $470,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Kathryn $50,000. Upon liquidation, $450,000 is available for distribution to the partners. What amount of cash will each partner receive?

Q2. Partners Sara and Mia divide profits and losses 2:3 with capital balances of $470,000 and $560,000 respectively. They agreed to admit Ana by his purchase of ¼ of Madre's interest for $300,000. They agreed to write off Accounts Receivable worth $5,600. Fixed assets were under-depreciated by $25,000. Payments of accounts payable in the amount of $7,200 was not posted to the payable account. What amount will be credited to Ana's interest?

Q3. On May 1, 2010, Cassie, Kiara and Loisa are partners with capital balances of $500,000, $300,000 and $400,000 respectively. They share profits and losses according to their capital balances. Loisa died on this date. They have determined that the net income earned as of this date is $325,000. However, inventories in the amount of $40,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2010 is $760,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner's fund until the end of the year provided he/she will be paid 18% interest from the date of his/her date. How much will be paid to the estate of Loisa?